You are on page 1of 32

Close up Whitening Cinnamon Blast

MARKETING PLAN

“Close up Whitening Cinnamon Blast”

SUBMITTED TO:

SUBMITTED BY:

TABLE OF CONTENTS
0
Marketing Management
Close up Whitening Cinnamon Blast

1. UNILEVER – AN INTRODUCTION 02
2. UNILEVER – PRODUCT MIX 04
3. HISTORY OF CLOSEUP 05
4. BRAND
“CLOSEUP WHITENINGCINAMMON BLAST” 06
Skin
5. CLOSEUP WHITENINGCINNAMON BLAST 07 care
6. POSITIONING OF THE PRODUCT 09
7. TARGET MARKET 10
8. STAGES IN THE PRODUCT LIFE CYCLE 11 Fair &
Lovely
9. MARKETING MIX 12
10. MARKET SIZE 15
11. MACRO ENVIRONMENT 17 Ponds
12. MICRO ENVIRONMENT 19
13. CONSUMER BEHAVIOUR 21
14. MARKET SHARE 23
15. BCG MATRIX 24
16. SEGMENT ANALYSIS 25
17. MARKET SEGMENTATION 26
18. ISSUES AT THE TIME OF LAUNCH 30
19. SWOT ANAYSIS 31
20. COMPETITION 33
21. FINANCIAL PROJECTION 35
22. MARKETING BUDGET 36
23. STRATEGIES TO ADOPT IN LATER STAGES 37
24. MEDIA GRAPHICS 39

UNILEVER – AN INTRODUCTION
1
Marketing Management
Close up Whitening Cinnamon Blast

If one travels around the world, he will find homes across all continents where people use
Unilever products. In fact, in many countries it would be hard to find homes without Unilever
products. Unilever is one of the largest, most international companies in the world. It is
'international', not 'global' because it does not attempt to enter all markets with the same
products. Products fall into two main categories, "Foods and Home" and Personal Care", each of
which is vast. Unilever sells over a thousand brands, many of which are market leaders - in a
country, in a region or in the world.
The story of how the company came into being is an interesting one. Lever Brothers was
founded in 1885 when W.H. Lever, later Lord Leverhulme, launched 'Sunlight' Soap. By the end
of the century he had built up one of the largest soap businesses in the world. On September 2,
1929, this company decided to merge with a Dutch Company, Margarine Unie and on January 1,
1930 'Unilever' came into existence. Both were international companies, active in some 40
countries, had a common customer – the housewife, and were using similar raw materials. After
the merger of these two giants, a form of organization was required that would give due weight
to both the British and the Dutch partners, and two companies with identical boards were set up.
The Unilever group is therefore made up of two parent companies having two headquarters - one
in Rotterdam, known as Unilever N.V. and the other in London known as Unilever PLC. The
apex of the two companies comprises of an Executive Committee, headed by the Chairmen of
Unilever PLC and Unilever N.V.
Unilever Pakistan Limited needs no introduction. In the world of consumer products it has
created an indelible name for itself with brands such as Lifebuoy, Lux and Surf. By far the
largest consumer products company in Pakistan, UPL is a part of the consumer products giant
Unilever. UPL was established some fifty years ago in the then newly created Pakistan. The
town of Rahim Yar Khan was the site chosen for setting up a
vegetable oil factory in 1958 and that is where the first UPL manufacturing facility developed.

Today, Unilever Pakistan is a force to reckon with. Its contribution to Pakistan's economic
development cannot be underestimated. Now operating six factories at different locations around
the country, the company contributes a significant proportion of the country's taxes. It employs a
2
Marketing Management
Close up Whitening Cinnamon Blast

large number of local managers and workers. It provides a pool of well-trained and highly
motivated manpower to other segments and has introduced new and innovative technologies into
the country.
The UPL Head Office was shifted to Karachi from the Rahim Yar Khan site in the mid 60's. By
this time the once dusty and sleepy village was the hub of activities for UPL. A residential estate
situated near the factory is the home of UPL employees at Rahim Yar Khan.
Unilever pioneered the business of processed animal and poultry feeds in Pakistan when they
began their production and marketing in 1960. However due to immense difficulties it was not
possible to keep this part of the business viable therefore it was closed in 1980.
A soap and glycerin factory was established in Chittagong in the then East Pakistan in 1961.
However this factory is no longer part of Unilever as a result of the secession in 1971. Surf, first
of their non-soap-detergent (NSD) powders was launched in 1963. It is produced by arrangement
with Fateh Ali Chemicals (Pvt.) Limited.
The present Karachi Edibles Factory was acquired in 1965 from A&B Oil Industries Ltd.
Reconstruction and expansion of the factory was completed in 1994 making it one of the most
modern plants in Pakistan.
Unilever moved into the Personal Products business in 1981. Further diversification on the food
side of the business has taken place with the introduction of margarine and cooking oils. In 1994
a state of the art factory for production Ice Cream (Wall’s) was erected and began production in
a record time of 10 months.
Unilever has acquired Lipton and Brooke Bond business worldwide, however in Pakistan it was
decided to merge Lipton with Unilever in 1984. Legal merger became effective in 1989.
Unilever and Brooke Bond merged in 1997.

HISTORY OF CLOSEUP

Close up WHITENINGCINAMMON BLAST is a line extension of the Close up range. In 1986


Close up came up with red and green gel. During 2000 close up ultra whitening was introduced
which doubled the sales. Looking at the sales of close up ultra whitening, Close up in
3
Marketing Management
Close up Whitening Cinnamon Blast

2003,came with a new variant of whitening gel with lemon in it as the lemon mint refreshes and
acts as a local analgesic. It also contained antioxidant vitamin C. Vitamin helps in healing of
wounds and it tightens the gums. Now in 2007 Closeup is making an addition to its family by
launching Close up WHITENINGCINAMMON BLAST. It is Red gel with Fluoride which
protects teeth against cavities, including Microfoamers which gently cleans and whitens the teeth
and freshening breath sparkles - for extra fresh breath.
This same gel was launched in other regions and it received tremendous response. In other
regions of the world, the color of the gel is red Close up whitening cinnamon blast has sweet
cinnamon flavor & prevents tooth decay as well as provides cavity protection.
So far the Close up Whitening Blast is very successful as it is adopted as flavor of cinnamon and
also its natural shine. Among the close variants, whitening blast is expected to be the second
highest selling variant. Ultra whitening sells the most. Close up whiteningblast will be widely
available in urban cities in the beginning as well as rural areas in coming days.

Brand - Close up Whitening Cinnamon Blast

4
Marketing Management
Close up Whitening Cinnamon Blast

Close up White Cinnamon Blast is a line extension in the product line of Close up. It is a variant
to the existing brand Close up Ultra whitening. Close up ultra whitening was doing very well
since its launch in 2000 but it had reached the maturity stage and growth had slowed down, so
Unilever came up with Close up Lemon Mint in 2003 to bring the brand back in the growth stage
with accelerated sales and a further 5% increase in market share. It is also enjoying its growth
phase of Product Life Cycle. Whitening Cinnamon Blast will be an addition to the Close up
family expected to give a rise to the current market share and growth rate.

Since it is characterized by high sales and the company is expected to be able to not only cover
its cost of production by breakeven, it will also be able to generate substantial profits.

CLOSEUP WHITENING CINAMMON BLAST


THE PREMIUM TOOTHPASTE
RETAIL PRICE Excl. st. Rs. 35.43/-

5
Marketing Management
Close up Whitening Cinnamon Blast

CONSUMER PRICE: Rs. 40/-

NET WEIGHT: 75 ml

TARGET MARKET: Upper-Middle Class

BUYING PATTERN: Impulse Buying

PROMOTION STRATEGY: Billboards, Banners and Electronic Media

SLOGAN: “Smile Without Hesitation with Close-up Cinnamon”

New Close up WHITENINGCINAMMON BLAST with fluoride and cavity protection is a


unique combination of Cinnamon & Fluoride with enhanced Micro whiteners and Germ killing
mouthwash. Its Fluoride makes teeth stronger. Its Gel cleans mouth thoroughly to give shiny
white teeth. Its germ killing mouthwash kills germs deep within the teeth and gives long lasting
fresh breath. Its Micro whiteners scrub away the yellow in between the teeth and whiten them
every time one brushes.

It is not a paste rather it is a tooth gel with ultra whitening granules, which are specially added
for the whitening and polishing of teeth. Fluoride makes teeth stronger and gives cavity
protection. It not only strengths teeth and bones but also prevents bleeding gums. This
combination of Cinnamon with Flouride is a unique and exclusive combination concocted by
Unilever for the first time to introduce an innovative product in the market, which will be
appealing to the youngsters and entice them to try it.

When one will use Close up Whitening Cinnamon Blast for the first time, he will feel like he is
rinsing his mouth with fresh lemons and the essence of cinnamon will have a lasting effect in his
mouth throughout the day. Such is the experience, which he would like to go through again and
again. It leaves senses enthralled.
6
Marketing Management
Close up Whitening Cinnamon Blast

POSITIONING OF THE PRODUCT


Close up Whitening Cinnamon Blast is positioned in the mind of the consumers as premium
toothpaste providing superior quality at a high price. It is only targeting a small niche segment
represented by the youth of the country, therefore it has promoted the brand in such a way that it
will appeal to the youth. Its billboards amply prove that by the look and the slogan, which says
7
Marketing Management
Close up Whitening Cinnamon Blast

“Smile Without Hesitation with Close-up Cinnamon ". As the toothpaste is a whitening blast,
it whitens the teeth within 3 or 4 weeks so, one can smile with more confidence and that the
slogan suits best.

Since the image is that of a peppy, youthful product it will be positioned in the same manner by
erecting huge billboards all across the town, which have an eye-catching effect and splash a
colorful message about the product attributes and benefits.

Unique Selling Proposition

Close up Whitening Cinnamon Blast is the first brand in the market to come up with the concept
of cinnamon, which is a traditionally not used very often in Pakistan. It has the sweetening flavor
of cinnamon with the power of the ultra whitening granules to provide ultra shine and whiteness
to teeth also containing fluoride for cavity protection. Its unique selling proposition is its
composition of cinnamon with fluoride, which is known to provide for stronger gums and teeth.
Not only that it has the properties of fluoride germ killing and its mouth wash and micro
whiteners act fast on the teeth to provide strong shiny white teeth and super fresh breath.

TARGET MARKET

8
Marketing Management
Close up Whitening Cinnamon Blast

PRIMARY
Upper lower
TARGET Class

Upper
middle Lower lower
class class

Upper-class

Lower middle
class

SECONDARY TARGET

STAGES IN THE PRODUCT LIFE CYCLE

9
Marketing Management
Close up Whitening Cinnamon Blast

Product class

The product class of Close up Whitening Cinnamon Blast is tooth-cleaning products, which
include tooth powders, toothpastes, miswak and dental floss. These have the longest life cycles
and the sales of most of them stay in the maturity stage for a long time.

Product Form

The product form is toothpaste. They also enjoy a fairly long life cycle. Toothpastes are in the
growth stage of the product life cycle as there is still competition emerging from different brands
and new brands keep coming in the market every now and then.

MARKETING MIX
Product
Close up product line includes close up green and red launched in 1986, followed by close up
ultra white launched in 2000 and Close up lemon mint, variant of the product line is launched in

10
Marketing Management
Close up Whitening Cinnamon Blast

2003. An extension to the product line by Whitening Cinnamon Blast which is been introduced
after the huge success of the Close up ultra whitening since its launch .Unilever wanted to
introduce a variant, which would supplement the already established Close up Ultra white, which
was doing very well and Close up Lemon Mint already in growth stage. So they came up with a
new product, Close up Whitening Cinnamon Blast with Fluoride, with the additional benefits of
cinnamon essence proven over the years to be a successful product for whiter, shinier teeth. The
introduction of Close up Whitening Cinnamon Blast is aimed to bring Close up back in the
growth stage as the Close up ultra whitening had reached maturity, so the launch of this variant
will bring the brand back to the growth stage with increased sales and market share.

Price
Since Close up Whitening Cinnamon Blast is a premium product, it is priced high. It has a very
high cost of production since it is a gel not paste, making it brand a cosmetic brand worthy of
charging a high price. The prices are internal driven decided by the headquarters of Unilever.
They keep a gross profit margin of 40%. The retailers’ profit markup will be 3.4%. The regular
size of Close up Whitening Cinnamon Blast will be 75 grams which will be priced at Rs: 40 and
the small pack of 13 grams will have a retail price of Rs: 20. We have kept a smaller sized Close
up Cinnamon Blast to skim the lower layers of the market due to its reduced price. The biggest
pack introduced at the time of launch will be a 150 grams tube for Rs: 80.

Promotion

Promotion is the key element in the marketing mix for a product. Consumer of close up
Whitening Cinnamon Blast will not be highly price conscious, as target market is the upper class
and the upper middle class. Since the product is planned to be launched on a very lavish scale to
create awareness about it and catch the consumer’s attention by its huge and attractive billboards
scattered in different areas of the city. The tag line is “Feel in heaven with Close up

11
Marketing Management
Close up Whitening Cinnamon Blast

Cinnamon”, as depicted in our advertisements as well as on the billboards. The concept behind
the ad will be that Close up Whitening Cinnamon Blast provides the user the confidence and
appeal as well as the charm and persona it takes to appear attractive and lure company. This kind
of a promotional strategy will seek to entice the youth, which is the main target market
comprising people between the age group of 16-25. It is built to identify with the mindsets and
psyche of this age group. Even though toothpaste is a low involvement product and it is
frequently purchased and that too by mostly mothers or housewives this segment of consumers
being targeted form an influential group affecting the choice of the brand for their mothers who
usually make the purchase, since this age group in Pakistan basically represents students or some
newly married couples.

The company at the time of launch will be introduced a very big family size pack of Close up
White Cinnamon Blast of 150 grams for Rs: 80 with a free Lux Milk Cream and Almond Soap as
a sales promotion strategy which companies use in the introduction stage of a product’s life
cycle. This strategy will be adopted at the time of launch to induce customers to try out the new
product to trigger sales.

The initial target is to achieve 20%. The company’s main objective is to increase the market
share of close up by an additional 5%.

At the time of launch we are focused on first filling the market by incentivizing the retailers. We
are sure to achieve this, as Close up is an established brand in the market with a good sales
turnover. We will also be providing brochures about the product at the point of sales terminal
apart from putting up banners in the various stores. We want to ensure that the product is
available in the market before the consumers even came to know of it through the
advertisements. This is to assure that the consumers would not be disappointed if they go to the
stores after learning about the product only to find out that it hasn’t reached the outlets yet.
12
Marketing Management
Close up Whitening Cinnamon Blast

The product is differentiated with a very sound unique selling proposition, which will lead to its
ultimate success in the market. The cinnamon ingredient in the toothpaste is the baby of Unilever
as it is an unheard of concept in toothpastes in local market to date. We are the pioneers for this
new concept and will have successfully launched the product in various countries.

Place
The target market for Closeup Whitening Cinnamon Blast is the upper class consumer between
the age group of 16-25. To be able to reach them, they are aiming to supply and distribute the
product in all the urban areas and elite cities, putting it in all the significant and frequently visited
retail outlets. However these are the areas of concentration, so they will not ignore the other
areas totally. Even though most sales turnover will be reported from the urban areas sales are
also expected from some rural areas. To ensure maximum coverage and achieve maximum sales
potential, Unilevers will distribute the product in all the retail outlets where there are existing
brands of the Closeup’s product line. This strategy will help in covering all areas with even the
little amount of exposure.

MARKET SIZE

The calculated market potential shows that out of 14 million populations of Karachi 40% people
come between the age group 16 – 25 and due to one reason or the other 20% people will not use
Close-Up Whitening Cinnamon Blast. There fore as calculated by them, the market size for
Close-Up Whitening Cinnamon Blast will be 20% of the entire market.

Calculation of Market Potential

Market Potential in Units = number of buyers x average consumption


Population of Pakistan = 160 million
13
Marketing Management
Close up Whitening Cinnamon Blast

Population between the age group of 16 – 25 = 40%


= 160000000 x 40%
= 64000000
Out of this population 10 % people do not have income
30% belong to lower lower class
30% belong to lower middle & middle class
4% people like using Tooth powder
3% people prefer medicated toothpaste
3% people do not like the cinnamon taste of Close-Up Whitening Cinnamon Blast toothpaste.
5% of the upper middle & upper class use other brands
And 15 % population which will use Close-Up Whitening Cinnamon Blast:
= 64000000 x 15%
= 12800000
So the market potential in units = 9600000

Market Potential in Rupees


Average toothpaste tubes used per month = 1
Price= Rupees.40 / tube

Total Market Potential

= Number of buyers x average consumption x price


= 9600000 X 1 X 40
= 384000000

Sales Potential

14
Marketing Management
Close up Whitening Cinnamon Blast

Unilever target for the sales potential of Close-up Whitening Cinnamon Blast is at least 20 % of
the current sales and targeted for taking away at least 5 % market shares from English Tooth
paste.

CONSUMER BEHAVIOUR
Consumer Behavior while purchasing a certain product is influenced by two factors: buyer’s
characteristics and buyer’s decision process.

Characteristics Affecting Consumer Behavior for Toothpaste Category

Buyer’s characteristics influence how he or she perceives and reacts to a particular product or a
particular marketing stimulus. There are various factors, which shape up the buyer’s
characteristics.

Culture
Culturally, Pakistani society is health conscious. Islam pays deep emphasis on personal hygiene,
therefore majority of the population are aware of the need for oral health. But as the majority of

15
Marketing Management
Close up Whitening Cinnamon Blast

the population lives in rural areas, they resort to traditional methods such as using Miswaak to
clean their teeth. Toothpaste manufactures have been creating awareness of the toothpaste
benefits and they have succeeded in gaining public trust. People living in urban areas are much
more aware of the health benefits of using toothpaste, therefore quality toothpaste are very
popular among the people dwelling in large cities.

Economic Situation
Pakistan has a weak economy where very few people can afford luxury items. For some people,
toothpaste is still a luxury item. People belonging to low-income class still use tooth powder, as
they are affordable. Toothpastes like Colgate and Close-up hold an inspirational value and
represent the well-off and affluent segment of the society.

Psychographics
Pakistani consumers are very social and like to mingle and socialize. Makers of cosmetic
toothpaste have focused on the particular segment of the society who is self confident and
outgoing. By studying the segment’s AIO (activities, interest, opinions), they have been

able to market a product like toothpaste as a representative of their lifestyle. Marketers have been
able to sell the image of youth with white teeth and fresh breath who are very popular among
their social circle.

Roles and Status


Traditionally, toothpaste manufacturers have marketed their brands as a family brand where all
family members use the same toothpaste. It has been a successful strategy for a long time, but as
the Pakistani society is evolving, each family member is becoming more aware of his or her role
and status. Toothpaste marketers are trying to evolve along with the society. Toothpaste
marketers have segmented the toothpaste market according to age and life cycle. Different
variants of toothpastes have been developed and exclusively targeted to kids and young teens of
the society.

16
Marketing Management
Close up Whitening Cinnamon Blast

Buying Behavior
Toothpaste is a convenient product where customer has low involvement buying behavior.
Customers may purchase a particular brand of toothpaste habitually or may try different brands
each month for the sake of variety. The challenge for toothpaste marketers is to convert the low
involvement behavior into the behavior where the customer becomes involved while purchasing
the product. Different marketing strategies have been developed by toothpaste manufacturers to
differentiate the products available in the market. Each manufacturer focuses on creating a
unique selling proposition, which makes their product stand out. Market leaders in the toothpaste
market try to encourage habitual buying behavior while the market challengers encourage
variety-seeking behavior by offering new variants of their products. Close-up adopts the strategy
in which they target the youth of today and promote their products to attract the teens and
involve them in the buying decision process.

MARKET SHARE
TOOTHPASTE INDUSTRY

17
Marketing Management
Close up Whitening Cinnamon Blast

SEGMENT ANALYSIS
Toothpaste market has been segmented on the basis of social class as well as benefits sought
from every toothpaste.

18
Marketing Management
Close up Whitening Cinnamon Blast

Upper Class Medium Class Lower Class

Medicinal Colgate Total Medicam

Economical English Mintocam


Close up Whitening
Cinnamon Blast/ Colgate
Cosmetic Whitening/ Close up Macleans
Whitening/ Close up Lemon
Mint
Family Health
Colgate Original Dentonic
Brand

MARKET SEGMENTATION
Demographic

Area/Regions/Density

19
Marketing Management
Close up Whitening Cinnamon Blast

Close-Up Whitening Cinnamon Blast Toothpaste targets all the major cities of Pakistan i.e.
Karachi, Lahore, Islamabad, Peshawar, Quetta, Faisalabad, Multan etc and there is mass
distribution in these cities.

Age (16-25)

Close-Up Whitening Cinnamon Blast is targeting a particular segment of the market that consist
of people between the age group of 16 to 25.Unilever also has this thought that when buying this
toothpaste for these youngsters, elders of the family may also end up using the same Close-Up
Whitening Cinnamon Blast toothpaste. Research shows that this age group prefers the brand to
the other brands due to different reasons.

Gender

Basically this product is a unisex product targeting both genders by the same token, reason being
that this is a consumer health product used by both genders equally.

Family Life Cycle

16 – 25 is an age group that mainly encompasses people who are teen-agers or young, single or
newly married as young generation has a great liking for junk food so they will prefer a
toothpaste with cavity protection.

Education

Mostly people who will use Close-Up Whitening Cinnamon Blast toothpaste are people who are
educated and are health conscious, as they know that brushing teeth is an important part of
hygiene.

Occupation

Close-Up Whitening Cinnamon Blast is a toothpaste which will be used by people of every
occupation whether a doctor, student, teacher, lawyer, whoever.

20
Marketing Management
Close up Whitening Cinnamon Blast

Psychographics

Income Group
20000+ is the targeted income level for Close-Up Whitening Cinnamon Blast.

Social Class
Being a niche product Close-Up Whitening Cinnamon Blast will be used by people belonging to
upper-upper class and upper-middle class. But research also shows that many people think that it
is highly priced but still they prefer it to other brands due to its high quality.

Lifestyle

People who will use Close-Up Whitening Cinnamon Blast toothpaste are all health conscious,
extroverts, out-going, trendy and social in nature. They will be inspired by advertisements and
packaging of the product as well. They don’t mind paying a little more for popular & expensive
toothpaste, which gives them, complete satisfaction.

Personality

People who will use Close-Up Whitening Cinnamon Blast toothpaste will be those who are more
health conscious, also fresh breath conscious, gregarious, ambitious, trendy & tasteful people
who use Close-Up Whitening Cinnamon Blast for hygienic purposes and internal satisfaction, as
they know they are also getting the promised quality and cavity protection. They are
mesmerizing in nature. They want the best for themselves. And they even agree upon the fact
that they advice people to use Close-Up Whitening Cinnamon Blast because they think it’s worth
the price.

Behavioral

Readiness Stage

21
Marketing Management
Close up Whitening Cinnamon Blast

Target market is aware of Close-Up toothpaste as a product, and will know how Close up
Whitening Cinnamon Blast differs from other brands available in the market, the price it offers
and the image that is associated with it.

User Status

Majority users of Close-Up Lemon Mint are those who like trying new tastes or who are using
Close-Up toothpaste for quite sometime or people who like the combination of lemon and mint
together. Other users are people who have switched to Close-Up Lemon Mint from some other
brand and find it better then others.

Benefits

There are many benefits of using Close-Up Whitening Cinnamon Blast toothpaste. First of all
it’s a quality product for keeping ones teeth clean. Second it just not cleans the teeth; it also
makes them ultra white; gives one a unique flavor of cinnamon. Third it provides cavity
protection and stronger teeth and gums. And last and most important of all it leaves breathe fresh
for long hours.

Usage Rate

Usage rate of Close-Up Whitening Cinnamon Blast toothpaste will increase day by day, as it’s in
its introductory stage of its life cycle. Research shows that many people will get attracted to the
product due to the enchanting advertisements and word of mouth.

Loyalty Status

22
Marketing Management
Close up Whitening Cinnamon Blast

Nothing can be said about the loyalty status at this point of time as the product is in its
introductory stage. On one hand nothing can be said about the loyalty status as toothpaste is a
convenience good, but on the other hand research shows that many people are loyal to Close-Up
toothpaste as a brand.

Attitude

Attitude of people between ages of 16 – 25 towards the product is very positive. The image of
the product is of a high quality, trendy, spanking new and expensive toothpaste. Overall it is
imaged as a good quality product, which gives complete value to its consumers.

ISSUES AT THE TIME OF LAUNCH


23
Marketing Management
Close up Whitening Cinnamon Blast

There will be no issues faced by the company at the time of launch. They launched Close up
lemon mint because Close up is represented as an innovative brand and are continuing their
practice by launching Whitening Cinnamon Blast. In the year 2000, they launched Close up ultra
whitening and they had a huge success and their sales doubled. Because of that they took out a
new variant in 2003. They expected a sale of 20% by the new Close up lemon mint, but they got
sales of 35%, which is a tremendous success. They actually extracted the sales from Colgate,
which they never even thought about. We are launching Whitening Cinnamon Blast for which
we have used a very attractive glossy and metalized material for packaging. For which we have
done outsourcing. Their cost of production is very high as we are manufacturing gels not pastes.

SWOT ANAYSIS
CLOSE UP Whitening Cinnamon Blast

24
Marketing Management
Close up Whitening Cinnamon Blast

Strengths

 Close up’s greatest strength is the blind trust of the consumers in the brand.
 The entire product range has extremely high brand awareness.
 The quality of the product is maintained at high standards under the supervision of
Unilever International.
 In the toothpaste category it’s the only Cinnamon brand available in Pakistan.
 It is perceived as a modern brand as compared to other brands as it caters to the youth.
 Its greatest strength is its combination of gel, cinnamon and fluoride. The gel with its
whitening formula while it refreshes and acts as a local analgesic.
 Close up Whitening Cinnamon Blast have antioxidant. Fluoride helps in making teeth
and gums strong.
 Close up Whitening Cinnamon Blast will be widely available in urban cities as well as
rural areas.
 Leaves teeth feeling extra clean and mouth feeling extra fresh.
 Close up Whitening Cinnamon Blast provides for cavity protection.

Weaknesses

 The brand suffers with an image problem. Close up focuses on the upper segment, just the
teenagers.
 Close up Whitening Cinnamon Blast has a sweet flavor which people of Pakistan are not
used to of.

 Close up is priced very highly Rs 40 for 75 grams and Rs 20 for 30 grams.


 As close up is gel based so its total cost of production is very high.
 Consumers perceived close up to be little expensive.

25
Marketing Management
Close up Whitening Cinnamon Blast

Opportunities
 As close up Whitening Cinnamon Blast is in its introductory stage of product life cycle, it has
a huge market.
 The branded market has been receiving a warm welcome in the metropolitan areas of
Pakistan.
 People are becoming health conscious and are switching to brands offering vitamins, cavity
protection and teeth whitening attributes.
 There is a growing segment of young people trying to socialize and project them selves as
cool young group. Therefore, the Whitening Cinnamon Blast with its whitening abilities and
cinnamon flavor stand a very good chance.
 In the toothpaste category it’s the only Cinnamon brand available in Pakistan. So it can be
priced very highly.
 No competition in this segment from other brands.
 Close up has innovative packaging glossy and metalized. All other tooth pastes have simple
packaging.

Threats
 The unbranded segment comprises an enormous 50 % of the market share.
 Toothpaste is a convenience good, not much brand loyalty.
 Close is facing threat from smuggled (imported) brands, which are snatching away the
market share.
 Close up’s biggest challenge would be to grow with the existing products.
 Close up’s direct competitors is Colgate which is much famous in the market.

COMPETITION
Basically four players namely; Medicam, English, Colgate and Close up dominate the branded
market of toothpastes in Pakistan. Besides this there are a very large number of un quantifiable

26
Marketing Management
Close up Whitening Cinnamon Blast

imported products in the toothpaste category. Therefore it becomes highly difficult to estimate
the market size.

Close up has many competitors all around Pakistan. Medicam is projected as cure for bleeding
gums and it is a premium product as it is priced very highly. English is projected as economical
family toothpaste and is priced very low as it caters to the lower income segment. Colgate
provides cavity protection and it is the direct competitor of Closeup. Besides these Closeup’s
huge competitors are smuggled brands and imported toothpastes.

In the toothpaste market, Medicam with its healing properties is a sure shot market leader.
However, Close up lemon mint is the market leader in the teeth whitening category.

The branded oral health care market is divided into toothpaste 52 % market share and tooth
powder 48% share. Among the 52 % of toothpaste, the market share is divided between the
smuggled imported brands and local brands such as Medicam, English, Colgate and Close up.

Close up has the youngest image in the mindset of the consumer, as it was the first one to market
toothpaste in trendy, glossy and metalized packing. Colgate and other brands that are trying to
keep up with competition also introduced new packaging. However, only Close up owns this trait
in the mind of the consumer.

Competitive strategy to deal with all the competitors at the same time would be designing one
strategy to deal with a competitor in a particular region, which would affect the sales and image
of the same product in the other region. Hence an extensive research is required to design a
competitive strategy according to a particular situation on hand.

As the market for toothpastes is characterized by perfect competition, a single firm cannot alter
the price by making alterations with its output. However, under perfect competition, the most
27
Marketing Management
Close up Whitening Cinnamon Blast

attractive strategy to attract customers is through price cuts. But as Close up is a market leader in
teeth whitening and is positioned as a youth brand, it should not go for a price cut option as it
might create a negative impression in the minds of loyal consumers.

The main reason could be attributed to the fact that consumer have low involvement with tooth
pastes products and they usually buy on price alone rather than passing through the normal
sequence of belief, attitude and behavior. There are not much visible differences among tooth
paste brands, and almost all brands have the same qualities, so consumer cannot distinguish
between different brands, they make their buying decisions on price alone. Also the whole family
is not involved in the decision-making. The housewife could be the decider, and the influencers
could be friends, family and advertisements.

STRATEGIES TO ADOPT IN LATER STAGES


OF THE PRODUCT LIFE CYCLE

GROWTH

28
Marketing Management
Close up Whitening Cinnamon Blast

Close up Ultra Whitening had reached the maturity stage, and the introduction of Close up
Lemon Mint is in growth stage but its sale is reaching in stable condition. Launching of Close up
Whitening Cinnamon Blast brought the brand back into the growth stage. Currently our product
Close up Whitening Cinnamon Blast is in the introductory stage, it is expected to have high
acceptance in the market and increased sales turnover reaping profits for the company. But as the
product will move to the growth and maturity stage they will have to adopt different strategies to
keep it afloat in the market.

MATURITY

Maturity stage is characterized by a decrease in the growth pace of the product. The sales have
stopped growing or have slowed down. This happens when your product has been tried and
bought by everybody in the market whom you were targeting but now there is no further increase
in sales. In this stage if you do not differentiate your product, competitors can take over the
market share by coming up with something new and different.

The first and foremost thing that should be done is to retain the market share by holding onto
existing customers, by providing them with additional benefits. They can also bring about more
augmentations in the product to make sure that it continues to entice the consumers and hold
onto their interest.

Another strategy would be to expand the market. Venturing into areas not covered previously
and developing the market for the product. Since Close up Whitening Cinnamon Blast is only
targeting the upper class segment, there might still be some areas, which are neglected. They can
tap into these areas by launching an economy pack for middle class people such as the white-
collar officers in the age group of 20’s who have

the desire to follow the trend and try the toothpaste but maybe cannot afford it at this price.

29
Marketing Management
Close up Whitening Cinnamon Blast

Secondly they can build primary demand. This can be done by educating people about the
benefits of brushing teeth after every meal and creating more demand by increased usage. They
can promote this in their advertisements by telling consumers to use the product thrice a day after
every meal.

DECLINE
This stage will only occur when the product has completely gone off the priority list of
consumers and they are no longer interested in purchasing it anymore. It has nothing new to offer
and it has failed in the face of fierce competition and rival brands.

This situation occurs a lot of times when a new technology is introduced in the market and the
existing companies are tentative about adopting it. They stick to their old methods and
techniques of production and therefore lose out on much lucrative opportunities.

The idea is set a trend rather than follow it. We want to be the innovators. We would want to be
the first ones to come up with a new idea or technology and present it in an attractive package to
the market.

We can also come up with a line extension or a new variant to revitalize sales and breathe life
into the dead brand. We can do this by changing the form and shape of the product

or adding something extra to come with a totally new unique selling proposition. In some cases
however we will have to come up with a totally new product to trigger interest of the consumers.

MEDIA GRAPHICS

30
Marketing Management
Close up Whitening Cinnamon Blast

Close-up Whitening Cinnamon Blast will target its consumers through different media graphics
such as news paper, radio, press, internet, billboards, and mainly through advertisements and
outdoor activities.

31
Marketing Management

You might also like